The Quick Read: A lender counts time on title from the date a borrower took ownership, shown by the recorded deed, to the date the new loan is disbursed or signed. Under the conventional agency guidelines, at least one borrower must have been on title for six months by then. A second, separate clock also applies when a mortgage is being paid off: that loan must be at least 12 months old. Passing one clock does not excuse the other.
What “Time on Title” Actually Means
Time on title is how long you have legally owned the home. It is not how long you have lived there, how long you have had a mortgage, or how long ago you signed a purchase contract. The clock starts when your name goes on the deed and the transfer is recorded.
Cash-out refinance estimate
The starting figures are an example value with a balance and a cash request in proportion. Replace them with yours.
Editable benchmark: 7.32% as of October 22, 2026 · Freddie Mac 30-year average via FRED®. A conventional market reference, not a cash-out refinance quote.
Illustrative starting assumptions: a $350,000 home value, a $193,000 current balance, the agency cap on a one-unit principal residence, a thirty-year term at the current Freddie Mac benchmark, and property taxes and insurance estimated at typical national rates. Every field is editable.
Illustrative estimate only — not a Loan Estimate, approval, quote, or commitment to lend. The rate field carries the weekly Freddie Mac thirty-year conventional benchmark, a market reference and not a cash-out refinance quote; a cash-out loan is priced by the lender at lock. The cash available is the loan the program cap allows less the balances paid off, before closing costs, which are not included. The HELOC line is the program’s combined loan-to-value ceiling applied to the same value and balance. Taxes and insurance are editable estimates. Licensed in sixteen states for consumer mortgages.
Lenders call this “seasoning.” The idea is simple. A home bought last month, then refinanced for cash, looks like a quick-turn deal, and the guidelines add a waiting period to filter those out.
Here is the rule in one sentence, from Fannie Mae’s Selling Guide on cash-out refinance transactions: at least one borrower must have been on title for six months before the disbursement date of the new loan. Freddie Mac’s Seller/Servicer Guide section on cash-out refinance mortgages carries the same six-month ownership idea.
Across the wholesale programs Lendmire places files with, that six-month test sits beside a 12-month test on the loan being replaced. Many borrowers who have owned a home for years still trip on the second one.
Key Terms Defined
Seasoning: The waiting period a lender requires before a loan or ownership counts as established.
Title seasoning: The time at least one borrower has been the recorded owner of the home.
Loan seasoning: The age of the existing mortgage you are paying off, counted from its note date.
Note date: The date you sign the promissory note for a loan.
Disbursement date: The date loan funds are actually released, which comes after the right-of-rescission window on a primary residence.
Delayed financing: An exception that lets a cash buyer take cash out soon after purchase, without waiting the full six months.
The Two Clocks, Side by Side
| Factor | Title clock | Loan-age clock |
|---|---|---|
| What it measures | Time you have owned the home | Age of the mortgage being paid off |
| Required length | 6 months | 12 months |
| Starts at | Recorded deed | Note date of existing loan |
| Ends at | Disbursement or note date (see below) | Note date of new loan |
| Applies when | Always, on conventional cash-out | Only if a first mortgage is paid off |
A homeowner who owns the home free and clear faces only the title clock. A homeowner who bought with a mortgage faces both, and the longer one controls the earliest date.
How the Clock Starts
The start date is the day you took title. Lenders confirm it with the recorded deed, the title report, or the prior settlement statement. Three dates people often confuse do not count:
- The day you signed the purchase contract.
- The day you finished renovations or moved in.
- The day you applied for the refinance.
Recording date and closing date can differ by a few days. If your purchase closed on a Friday and the deed was recorded the following week, a cautious lender will look at what the deed and settlement statement show. Pull both documents before you plan around a date.
Which End Date the Lender Uses
This is the detail competitors rarely explain. The count does not end when you apply. It ends later, and the agencies measure the endpoint differently.
| Agency | Title clock ends at |
|---|---|
| Fannie Mae | Disbursement date of the new loan |
| Freddie Mac | Note date of the new loan |
Disbursement usually lands a few days after the note date because of the three-day rescission window on a primary residence. So a file that looks eligible on signing day can miss by a day or two under the disbursement standard. Which date a lender applies is something to confirm up front, since lenders can add their own requirements on top of the agency rule.
The loan-age clock runs note date to note date at both agencies, as Freddie Mac’s guide states.
Worked Calendar Examples
These use dates in plain words, with no dollar figures.
The standard buyer. You bought a home and took title on the 1st of a month with a mortgage. Six months later, the 1st, the title clock is met. The mortgage clock is not. The loan you took out at purchase must be 12 months old, note date to note date. Your earliest eligible date is a full year out, not six months.
The near miss. Say you took title on the 15th and plan to sign on the 12th, six months later. You are three days short. Signing on the 12th fails. Moving the date to the 15th or later, with room for the rescission window if disbursement is the measure, fixes it. A short slip like this costs you a few days, not a denied file, if you catch it early.
The long-owned home with a recent refinance. You have owned the home for ten years, so title seasoning is long met. But you refinanced last spring. That refinance is now the loan being paid off, and it must be 12 months old. Years of ownership do not excuse a young mortgage.
The cash buyer. You paid cash and want money back out of the home. Waiting six months is one path, and delayed financing is the faster one, covered below.
When the Clock Is Shortened or Skipped
Fannie Mae’s guide names the exceptions. There is no waiting period if the lender documents that the borrower inherited the property or was legally awarded it through a divorce, separation, or dissolution of a domestic partnership. Freddie Mac’s product page for cash-out refinancing likewise says no seasoning requirement applies to inherited properties.
| Situation | Title wait | Still applies |
|---|---|---|
| Inheritance | Waived | Other tests, including the 12-month loan test if a mortgage remains |
| Legal award (divorce, separation) | Waived | Same |
| Delayed financing | Replaced by its own conditions | Priced and limited as cash-out |
| LLC-held property | LLC time can count | Title must move to the individual before closing |
An inheritance does not waive every rule. It waives the title wait only. The home still needs an appraisal, the borrower still needs to qualify, and a mortgage on the property still has its own age.
How Delayed Financing Works
Delayed financing is for buyers who paid cash. Under Fannie Mae’s guide, it covers a purchase within the past six months, measured from the purchase date to the disbursement of the new loan. Lenders typically look for a documented arm’s-length purchase, a settlement statement showing no mortgage, proof of where the cash came from, and a clean title search. The new loan amount is limited by what you documented putting into the purchase, plus certain closing costs. These conditions come from secondary summaries and should be confirmed against the guide and your lender’s review.
Two cautions. Delayed financing is still a cash-out refinance, so it carries cash-out limits and terms. And if you funded the purchase with a loan from another source, such as a line of credit on another property, that debt generally has to be paid off or down from the proceeds.
Title in an LLC, a Trust, or With a Borrower Added
Entity and co-owner situations are where counting gets tricky.
LLC. Fannie Mae allows time held by an LLC that the borrower majority-owns or controls to count toward the six months. The catch: title must come out of the LLC and into your individual name for the loan to close.
Adding someone to the deed. Fannie Mae needs only one borrower to meet the title test. Adding a spouse or partner later does not restart the clock for the person already on title. Freddie Mac is stricter in one respect: on a primary-residence cash-out, every borrower must occupy the home. Adding a person to the loan who does not live there can create a problem even if the title time is fine.
Buying out a co-owner. Paying off a subordinate lien or buying out a co-owner under a legal agreement is exempt from the 12-month loan-age test, per summaries of Fannie Mae’s guide. Confirm the exemption with your lender before relying on it.
How Loan Type and Occupancy Change the Count
Everything above describes conventional cash-out. Government loans count differently, and that surprises people.
- FHA cash-out is not really a title test. It is an owner-occupancy test: roughly a year of owning and living in the home. The exact wording is in HUD Handbook 4000.1, and a lender should verify the current text.
- FHA Streamline counts payments on the existing FHA loan. HUD requires at least six payments made on the FHA-insured loan being refinanced, per Mortgagee Letter 2020-30.
- VA IRRRL is VA-to-VA only and counts payments plus days: the later of 210 days and six payments on the existing VA loan.
- VA cash-out of a non-VA loan has no VA loan to season, so timing depends on the lender.
Occupancy changes leverage, not the idea of the clock. Conventional cash-out on a one-unit primary residence goes to 80% loan-to-value. Two- to four-unit primary residences, second homes, and investment property go to 75%, per the program guidelines and the Fannie Mae Eligibility Matrix. That matrix also notes minimum reserves apply to cash-out files run through automated underwriting with a debt-to-income ratio above 45%. One wholesale lane reaches 89.99% loan-to-value with no mortgage insurance, for a 680 score and a 50% ratio on a 30-year fixed primary residence at a conforming balance, with its own six months of seasoning. In Texas, a cash-out on a homestead is capped by the state constitution at the agency figure, and that wholesale lane is not written there. All figures are subject to lender guidelines and full file review.
A refinance that is not cash-out can reach 95% loan-to-value on a one-unit primary residence and has no title-seasoning test of this kind. The trade is that cash back is only incidental.
What a Lender Asks For
Expect to hand over:
- The recorded deed or a title report.
- The prior settlement statement from your purchase.
- Mortgage statements and payment history.
- Bank statements, if delayed financing applies.
- Court documents or probate records, for inheritance or divorce.
- A new appraisal. Freddie Mac requires a new appraisal and inspection report on a cash-out.
A cash-out also gets full underwriting. The streamlines are generally lighter on documentation.
If You Are a Few Days Short
You have three practical moves.
1. Wait. If you are days away on the title clock, a more affordable fix is a later signing date. Leave a buffer for the rescission window.
2. Check for an exception. Inheritance, a legal award, or a cash purchase may change your count.
3. Consider a different structure. If you only need to lower your loan cost or change terms and not pull equity, a rate-and-term refinance avoids the title test. If you are weighing a home equity loan or line, note that the CFPB explains those leave your original first mortgage in place, while a cash-out replaces it.
Run the full decision against your actual dates. A week of planning is cheaper than a denied file.
Common Misunderstandings
- “Six months from when I applied.” No. The count ends at disbursement or the note date, not application.
- “Six months is the only wait.” The 12-month loan-age clock is the one most often missed.
- “Delayed financing is unlimited cash.” It is capped by what you documented investing.
- “Months equal days.” A 210-day test can run past six calendar months.
A cash-out also changes your loan itself. The CFPB notes in its guide to using home equity that a larger loan replaces the current one, which can extend the payoff time and raise the monthly payment.
When you are ready to compare options, Lendmire’s cash-out refinance programs page lays out how the lanes differ. Related reading: Lendmire’s piece How a Lender Releases Your Title After a Cash-Out Refinance Payoff covers what happens at the other end of the process.
If you are weighing a cash-out refinance against keeping the loan you have, Lendmire can help you compare the programs and the equity each one reaches.
Frequently Asked Questions
Does the waiting period start when I close on the purchase or when the deed is recorded?
It starts when you took title, which the recorded deed and settlement statement document. These dates are usually close together but can differ. Pull both documents and have your lender confirm which one it uses.
I have owned my home for years. Why was I told to wait?
Probably the loan-age clock. If you refinanced recently, that loan is the one being paid off, and it must be at least 12 months old, note date to note date. Long ownership does not excuse a young mortgage.
Do I need to wait if I inherited the house?
Not for the title test. Fannie Mae and Freddie Mac both waive title seasoning for inherited property. Other requirements still apply, including an appraisal, full qualification, and the age of any mortgage left on the home.
Can I add my spouse to the deed to meet the requirement?
Adding someone does not restart the clock for the borrower already on title, and Fannie Mae needs only one borrower to meet the six-month test. Freddie Mac requires every borrower on a primary-residence cash-out to occupy the home, so the added person matters for that reason.
Do FHA and VA loans use the same clock?
No. FHA cash-out looks at about a year of owning and living in the home. The FHA Streamline and VA IRRRL count payments on your existing government loan, and the VA test also counts days. Program figures are subject to lender guidelines and full file review.
For your own numbers, request a scenario review with Lendmire.
About Lendmire
Lendmire, NMLS# 2371349, is a mortgage brokerage with consumer lending licenses in 16 states. FHA, VA, conventional and jumbo purchase and refinance loans are arranged through wholesale lending partners, and each application is reviewed individually by the lender. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
Get Started
Ready to find the right loan for you?
In about two minutes you can review financing options available for your home or investment property. No commitment required.
Informational only. Not a Loan Estimate, approval, or commitment to lend. Program availability and eligibility are subject to lender guidelines, credit approval, property review, and underwriting.
References
1. Fannie Mae Selling Guide B2-1.3-03, Cash-Out Refinance Transactions
2. Freddie Mac Seller/Servicer Guide §4301.5, Cash-out refinance Mortgages
3. Freddie Mac Cash-Out Refinance product page
6. Fannie Mae Eligibility Matrix
7. CFPB Office of Research blog on cash-out refinance mortgages 2013 to 2023
8. CFPB Using home equity guide for older Americans
This article is part of Lendmire’s cash-out refinance program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: How to Get Equity Out of Your Home Without a Refinance · How a Lender Credit Works on an ARM-to-Fixed Refinance · How to Time a Refinance Around the Seasoning Clock and Payment History
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
- Mortgage Loan Originator · NMLS# 1129696 · Verify on NMLS Consumer Access
- North Carolina Real Estate Broker · License# 343312 · Verify on NCREC
- North Carolina Insurance Producer · License# 19053198 · Property, Casualty, Life, Health · Verify on NAIC SBS
- Lendmire LLC · Firm NMLS# 2371349 · Verify firm licensure
Required disclosures. Lendmire (NMLS# 2371349) operates as a licensed mortgage broker, not a direct lender or depository. The discussion in this article is general in nature and should not be relied upon as financial, legal, or tax advice — every investment scenario is unique and should be reviewed by a qualified professional. Any loan inquiry is subject to lender underwriting, and this article is not a commitment to lend or a guarantee of approval. Mortgage rates, loan terms, and program guidelines vary by borrower, property, and state, and may change without notice. Equal Housing Opportunity. Verify licensure at NMLS Consumer Access.